United Auto Workers Go On Strike
On Friday, September 15th, about 13,000 US auto workers stopped making vehicles and began their strike after failures to negotiate between United Auto Workers (UAW) and Detroit's big three automakers. Members of UAW began picketing at a General Motors assembly plant in Wentzville, Missouri; a Ford factory in Wayne, Michigan; and Stellantis Jeep in Toledo, Ohio.
The strike comes at a critical time in the auto industry's history, with the transition to electric vehicles, and could determine the future of the American auto industry. The walkouts at the Detroit Three will halt production of the Ford Bronco, Jeep Wrangler, and Chevrolet Colorado. The strike caps off a week of failed negotiations between Shawn Fain and the Detroit Three executives over a list of demands that ranged from pay increases to more robust job security in light of the growing demand for electric vehicles.
In terms of production, Stellantis says it has more than 90 days' worth of Jeeps in stock and has been building SUVs and trucks on overtime. However, they predict that even a week-long strike at the Ohio Jeep plant could cut revenue by more than $380 million. The United Auto Workers have a list of demands that they have presented to the heads of the Detroit Three.
Raises
UAW has requested an immediate 20% raise and ten additional raises of 5% over the four-year contracts. Together, these would increase the hourly pay by 46% for the duration of the contract. The counteroffer from General Motors and Ford is a 10% increase in hourly wage, and Stellantis has offered 14.5%.
Pensions and Inflation Adjustments
UAW has requested a return to form regarding pension payment plans and retiree healthcare for all workers. Workers who joined the union in 2007 still have access to these traditional benefits, but most workers who have been hired since do not. The UAW is also worried about inflation and is seeking cost of living adjustments to protect its members.
Job Protections and Benefits
The UAW has also expressed concern about using temporary workers and overtime. They are now requesting limits on temporary work and an end to forced overtime. This includes more time off for workers and, most notably, a four-day workweek.
Just Transition to Electric Vehicles
The strike comes at an important time in the clean energy transition. The Biden administration has led the charge on pouring billions of dollars in federal subsidies into expanding electric vehicle sales, and the big three automakers have all announced plans to spend billions on new electric vehicles. Although the UAW is not opposed to the electric vehicle transition at large, they are concerned about what this could mean for their job security. Electric vehicles are extremely profitable because they have fewer parts than gas-powered cars and require 30% less labor to assemble than gasoline-powered cars. UAW has urged the big three automakers that the transition needs to be just.
Political Ramifications
During President Biden's tenure, he has paved the way for a surge in electric vehicle production. President Biden said in a statement today that he wants both parties to return to the negotiating table to strike a "win-win agreement." He said while no one wants a strike, he respects the worker's right to use their options under the collective bargaining system. He is also dispatching White House economic adviser Gene Sperling and Acting Labor Secretary Julie Su to Detriot to offer their support to the parties. In response, former President Trump has made his opinion known, calling the shift to EVs a job killer for the UAW in an effort to potentially gain votes for his upcoming reelection campaign. Ahead of the strike, the UAW had not endorsed President Biden's reelection campaign.